Retailers' click-and-collect business has been booming since Covid-19. It is therefore essential to have a good order management process. But how do you optimize this ordering process and best meet this booming demand?
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What are the main stages in the order management process?
In order to track and manage inventory and orders as effectively as possible, it is essential to follow certain steps. These steps range from receipt of goods, to order entry, to delivery to the customer.
Receiving goods
The first step is to retrieve the customer's merchandise order request. To do this, we need to check and take into account the information given, such as the part number and the number of goods. This information is then entered into an order processing software system.
Order picking
Once the customer's instructions have been entered, the second step is to pack the merchandise and prepare it for shipment. Shipping is determined by the customer's choice of conventional or courier delivery, and by the fragility, volume or speed of the product being sent.
What are the main malfunctions in order management?
In order to be efficient and optimize your order management, you need to ask yourself what could be going wrong, so that you don't repeat mistakes in the order management process.
Poor management of storage space
Merchandise can sometimes be misplaced, preventing potential storage of products. A poorly organized warehouse also means wasted time searching for products.
Poor order picking management
Picking is the organized removal of customer orders. Poor management can lead to mixed orders, with an increase in returns, and therefore over-invoicing, i.e. a loss of money.
Poor communication of order traceability
Today's customers demand to know the details of the order process for their goods (order preparation, delivery to the carrier, routing...).
A poor inventory of stored goods
If the stock in the warehouse is not kept up to date, this can lead to products being wrongly addressed, and not being able to cope with a possible stock-out.
Human errors
Poorly trained personnel can cause errors, as can inadequate or poorly maintained handling equipment.
Late shipments
If there's one thing customers hate, it's to receive their product late, and not on time.
For all the reasons outlined above, it is essential to optimize order management, so as to avoid repeating the mistakes described above. Because these errors can result in lost time, costs and a poor company image, it's imperative to follow these tips.
What are the advantages of optimizing order management?
To avoid the inconvenience of poor order management, it's important to follow these key points, and to use certain management tools:
Optimizing warehouse space
In order to save on logistics, it's important to plan an efficient storage organization, using the right tools: space-saving shelving, robotization, adapted storage crates and pallets. This will save storage space, allowing you to put away as much merchandise as possible, and therefore make money by not missing a sale.
Adopt a merchandise distribution strategy
It's worth investing in warehouse management software (WMS), to guarantee assiduous stock control. No time is wasted searching for goods, and delivery time is saved.
Order automation
In order to avoid the slightest error when placing orders, automatic order management reduces order processing times. This increases the number of goods collected per hour in the warehouse.
Guarantee merchandise traceability
To limit product traceability errors, it's worth investing in software (CAPM: Computer-Aided Production Management) that can track the product from its entry into the warehouse to its final destination.
Good warehouse signage
Since machinery circulates a lot in the warehouse, signage needs to be well organized (signs, colors, symbols...).
As we've just seen, the objective and benefits of using tools to optimize order management are significant. It saves time, money and customer confidence. Even if the initial investment is in tools (order preparation software, management software, automation, etc.), it will reduce the number of errors and supply disruptions, cut costs and improve service quality.
